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New Delhi, August 22 (HS). Market regulator SEBI is considering a proposal to allow credit rating agencies, KYC registration agencies, custodians, depositories and index providers to submit self-attested documents in the coming days. In this regard, SEBI has issued a consultation paper today. Opinions on this consultation paper can be sent to SEBI by September 6.
The consultation paper issued by SEBI cites the report of the Company Law Committee. This report states that the central government wants to promote a trust-based system to increase transparency and curb personal interest in business. Under this, it has been proposed to allow self-declaration instead of affidavit to promote ease of doing business.
The committee report says that many states have started using self-declaration in place of affidavit. The Company Law Committee report also mentions that self-declaration does the same work as is done through affidavit, but there are fewer formalities in self-declaration. Along with this, under the legal system, there is a provision for the same punishment for saying false things through affidavit as there is for giving a fake self-declaration. In such a situation, there will be no harm in using self-declaration or self-certification in place of affidavit, rather the convenience of work will increase due to fewer formalities.
SEBI's consultation paper also states that the use of affidavits not only increases expenses, but also increases the burden of unnecessary approvals. Keeping these things in mind, SEBI has said in its consultation paper that it appears that the rule of attesting documents by a notary does not serve any additional purpose as compared to self-attestation. In such a situation, self-attested documents can be used instead of notarized affidavits for ease of doing business. SEBI has sought opinions from the people through this consultation paper. People's opinions will be collected till September 6, after which SEBI will reach a final decision after discussing it.
